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Yes. The SBA can – we can say that the SBA really has saved the small businesses in the US. We are going to give you our prediction and we are going to maybe let you know what to do if you are small business owners to get help. 2. It may be different. OK? Tax Season 2021 is Here: What's supposed to happen is that, if you have an EIDL and used it (or part of it), not the advance, but the loan, for payroll purposes that the second PPP should basically "roll it in" to a new PPP altogether. I’m not a business owner.” No. Print this voucher and bring it with you to our offices at New PPP Rules – Will Schedule C Filers Be Able To Reapply and Get PPP Loan Increase? You must supply your 2019 or 2020 (whichever you used to calculate your loan amount) IRS Form 1040, Schedule C; Form 941 (or other tax forms or equivalent payroll processor records containing similar information); and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate your loan amount) or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions, if applicable. Now in this video, I’m going to do three things. The new IFR allows a Schedule C filer who has yet to be approved for a PPP first- or second-draw loan in the current, $284.5 billion phase of the program to elect to calculate the owner compensation share of its payroll costs based on either net profit (as reported on line 31 of Schedule C) or gross income (as reported on line 7 of Schedule C). Why? OK? Number of Employees (including owners): If you do not have any employees (other than owners), complete this table: A. And maybe it’s a hard road ahead if you’re going through tough times but we cannot lose hope and we cannot lose our faith in God Almighty. The new IFR allows a Schedule C filer who has: Yet to be approved for a PPP first- or second-draw loan in the current, $284.5 billion phase of the program to elect to calculate the owner compensation share of its payroll costs based on either net profit (as reported on line 31 of Schedule C) or gross income (as reported on line 7 of Schedule C). And now, you know what you need to do. Thank you for watching. OK? Along with the other changes, the BIGGEST change for PPP is that Schedule C filers can will now be able to go with GROSS income (Line 7 of schedule C) instead of net, making your loan amount greater. And if you read it, you have to meet certain requirements if you are partnership, if you are seasonal employer, if you are farmers and ranchers, and it gives you all specific circumstances that you can go ahead and reapply for a PPP 1 loan increase. For those Schedule C filers who had no employees, the method is: Step 1: Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). But as of today, that is not an option. (Schedule C ‐ Line 7) 2019 Line 7: $ 2020 Line 7: $ Note: You now have a choice to use either line 7 or line 31 when calculating your PPP amount. GOOD: There are some other changes tucked in here that don’t quite take center-stage, including PPP eligibility for those who are delinquent or defaulted in federal student loans, and those who have non-financial fraud felony convictions in the past year, both of which previously were bars to eligibility. This is saying that right now, today, March 5th, 9:02 AM, if you’re a Schedule C filer, you got a PPP loan 1 or 2 approved, at this time, you cannot get an increased for the PPP loan you already got using the old formula. SBA RRF - Restaurant Revitalization Fund Application Registration Portal is Open, Restaurant Revitalization Fund Start Date is April 30, 2021 - SBA Restaurant Grant, NEW SBA Restaurant Revitalization Fund - Up to $10 Million SBA Grant for Restaurants, NEW $5000 SBA Grant - Supplemental Targeted Advance, NEW SBA EIDL Loan Increase Online Application - Up to $500,000, DOWNLOAD SBA PROCEDURAL NOTICE TO RE-APPLY FOR PPP LOAN. Less than 24 hours ago, late Wednesday, March 3, 2021, the Small Business Administration posted the latest revision to the Paycheck Protection Program (PPP) and these revisions have MAJOR effects on how sole proprietors, independent contractors, and others who file taxes using IRS Form 1040 Schedule C. Bottom line? You are the captain of your own ship. Call the banks. If you go to that section that says “Reapplying and loan increases” and by the way, this section right now is only available in the PPP 1 landing page at this time. But to date, very few lenders have actually asked me about the EIDL. OK? The SBA had issues with their portal. If you haven’t filed your 2020 tax return, you can fill out Schedule C, line 7 and apply for the PPP. Even if you were eligible for significantly more money under these new rules, if you have taken both loans, you can’t go back and increase them (subject to the big gray area above). Step 1: Look at your return and determine if you want to use Net Income (Line 31) or Gross Income (Line 7). Look. Call the lenders. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Good. But the SBA provided a way to reapply in January of 2021. So now, you can apply because you are going to use Line 7 which is your gross income. Will independent contractors, self-employed, sole proprietors who already got a PPP loan approved be able to reapply and get these additional PPP loan funds? “Gross Income” is the amount you earned before expenses and “Net Income” is the amount you earned after all expenses, basically your profits. It’s likely that to maximize the amount of your PPP, you would use Gross Income (but check with your tax professional). Last. Your choice of your net profit (line 31) or gross income (line 7) (Note: If both are zero or less, you are not eligible for a PPP loan.) draw PPP loans. Fill in the form below and one of our specialists will be in touch soon! Thank you for watching this video. Economic Necessity So, what should you do? Even under that rule, however, if your First-Draw Loan has been forgiven, you are out of luck on that front as well. $4800 (annual net profit) ÷12 (months) X 2.5 = $1000. Don’t listen to other channels. Let us assist you on your way to financial freedom. Calculating your PPP loan amount as an independent contractor. Blueacorn ppp round 2 for self-employed schedule c line 7? Call the lender. See right here that it says you can use Line 7, meaning that you are going to be able to get a higher PPP loan amount compared to all the other Schedule C filers that had applied in the past and got their PPP loan approved with their Schedule C. This opens up the door to a lot of people who were not eligible in the past especially if your Line 31 net profit of the Schedule C was too low or even had a loss on Line 31. … I'm making more now and I can keep working essentially making over $1600 a week without fearing the state coming after me. Second, employer contributions for employee group health, life, disability, vision and San Francisco, CA 94111. Let’s say you are a Sole-Proprietor with No Employees, who made $50,000 in net income last year (2020) and you have filed your 2020 1040 tax return with your Schedule C. How do you calculate your PPP amount under the new rules? OK? Step 4: Add in any EIDL Loan (not EIDL Advance) that you received between January 31, 2020 and April 3, 2020 that you want to refinance. So there’s a lot of confusion because we posted a video yesterday basically informing the public that if you are a Schedule C filer and you got a PPP loan 1 or a PPP loan 2 already approved, that at this time you are not able to get that loan increased with the new formula. The new IFR allows a Schedule C filer who has yet to be approved for a PPP first- or second-draw loan in the current, $284.5 billion phase of the program to elect to calculate the owner compensation share of its payroll costs based on either net profit (as reported on line 31 of Schedule C) or gross income (as reported on line 7 of Schedule C). So that’s the first fact. ASMP — American Society of Media Photographers. or CALL US at (407) 344-1012. This means that if you had a negative or low amount and could not get a PPP loan, or the loan amount was not worth getting previously, you may now be eligible. But like all programs, this change has good and bad elements. Take charge of this situation. Step 2: Calculate the average monthly net profit or gross income amount (divide the amount from Step 1 by 12). - PPP Ran Out of Funds? Previously, you could only base the amount of your “Owners Replacement Compensation” on Line 31 (Net Income) of your Schedule C. This meant that If you made $50,000 and had $55,000 in expenses, your Line 31 would be negative, and you could not get a PPP. I ... Now I'm making $1136.7 with PPP. Step 3: Multiply this number by 2.5. I think they are going to wait until the end of this round of PPP loans after the March 31st date to provide a way for you to do it. 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